ISSUE:
Whether the imposition to levy entry tax in relation to Entry 52 List II of Schedule VII violative of Article 301 of the Constitution?
Whether the entire State or any part will be covered as a “local area” for entry tax?
Whether the Haryana Local Area Development Act, 2000 is violative of Article 301 and Article 304 of the Constitution of India?
RULE:
Entry tax is legitimate under the constitutional framework since Entry 52 of the State List provides for the levy of entry law. Entry taxes are a sort of tax that state governments apply on the transportation of commodities between jurisdictions. When entering the products, it is paid to the state governments. Many states have implemented and announced entry tax legislation in response to this clause. But unless a law is in accordance with other provisions listed in the Constitution, being listed in the Seventh Schedule does not make it constitutionally valid.